RBI imposes monetary penalty on Bharat Co-operative Bank (Mumbai) Limited

**Executive Summary** The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹15 lakh on Bharat Co-operative Bank (Mumbai) Limited for non-compliance with RBI directions on 'Interest Rate on Deposits'. The penalty was imposed on February 6, 2026, following a statutory inspection as of March 31, 2025. The penalty is imposed under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. **Key Points / Main Content** * **Monetary Penalty:** * RBI imposed a penalty of ₹15 lakh on Bharat Co-operative Bank (Mumbai) Limited. * The penalty is for non-compliance with RBI directions on 'Interest Rate on Deposits'. * **Basis for Penalty:** * The penalty is based on findings from a statutory inspection conducted by RBI with reference to the bank's financial position as of March 31, 2025. * The bank failed to comply with certain RBI directions. * The bank did not pay any interest on certain eligible term deposits that were withdrawn prematurely. * **RBI's Actions:** * RBI issued a notice to the bank to show cause as to why a penalty should not be imposed. * RBI considered the bank's reply and oral submissions before imposing the penalty. * The penalty is imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. * **Disclaimer:** * This action is based on deficiencies in regulatory compliance. * The action is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. * The penalty is without prejudice to any other action that may be initiated by RBI against the bank. **Impact Analysis** **Bharat Co-operative Bank (Mumbai) Limited** * **Impact:** The bank has incurred a monetary penalty of ₹15 lakh. The bank's regulatory compliance record has been negatively affected. * **Action Required:** The bank must pay the penalty. The bank must address the deficiencies in regulatory compliance related to interest rate on deposits. **Customers of Bharat Co-operative Bank (Mumbai) Limited** * **Impact:** The document states that the imposition of the penalty does not impact the validity of any transaction or agreement entered into by the bank with its customers. * **Action Required:** No action is required.

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